Match each ratio to its use. Items may be used more than once.
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Answer:
Price Earnings (P/E) Ratio |
To indicate future earnings prospects |
Working Capital |
To indicate the ability to meet currently maturing obligations |
Rate earned on Total Assets |
To assess the profitability of the assets |
Ratio of Liabilities to Stockholders’ Equity |
To indicate the margin of safety to Creditors |
Quick Ratio |
To indicate instant debt-paying ability |
Rate Earned on Common Stockholders’ Equity |
To assess the profitability of the investment by common stockholders |
Current Ratio |
To indicate the ability to meet currently maturing obligations |
Ratio of Net Sales to Assets |
To assess the effectiveness in the use of assets |
Dividend per Share |
To indicate the extent to which earnings are being distributed to common stockholders. |
Earnings per share (EPS) on Common Stock |
To assess the profitability of the investment by common stockholders |
Match each ratio to its use. Items may be used more than once. - A. B. C. D. E. F. G. H. Price-Earnings (P/E) Ratio - A. B. C. D. E. F. G. H. Working Capital - A....
Match each ratlo that follows to its use items a-n). Items may be used more than once. Clear All dividends per share current ratio indicate the margin of safety to creditors quick ratio indicate instant debt-paying ability rate earned on common stockholders' equity indicate the ability to meet currently maturing obligations ratio of sales to assets assess the effectiveness in the use of assets rate earned on total assets indicate future earnings prospects earnings per share (EPS) on common stock...
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each ratio that follows to its use. Items may be used more than once. Clear All Quick ratio Indicate future earnings prospects. Dividends per share < Indicate the ability to pay current liabilities. Return on total assets Assess how effectively assets are used Asset turnover ratio Indicate instant debt-paying ability Retum on common stockholders' equity Indicate instant debt-paying...
Q-2 FINANCIAL RATIO FORMULAS Match each of the following financial ratios with its formula: Accounts Payable Tunover Ratio Fixed Asset Turnover Ratio Asset Turnover Ratio Cash Coverage Ratio Cash Ratio Current Ratio Average Age of Receivables Average Days Supply in Inventory Receivable Turnover Ratio Debt-to-Equity Ratio Earnings per Share (EPS) Financial Leverage Percentage Times Interest Earned Ratio Inventory Turnover Ratico Price/ Earnings (P/E) Ratio Profit Margin Quality of Income Quick Ratio Return on Equity (ROE) Return on Assets (ROA) A....
Match the terms given below with the definitions or descriptions. Distribution of cash or other assets from a corporation to its stockholders Earnings per share A Measures the percentage of total assets that creditors provide Choose... The excess of current assets over current liabilities Choose... Current assets divided by current liabilities Choose... Measures of the income or operating success of an enterprise for a given period of time Choose... A measure of the net income earned on each share of...
Please take this list and write the formulas used for these ratios and what the ratio is telling us or used for Payout ratio Price-earnings (P-E) ratio Profitability ratios Profit margin Pro forma income Quality of earnings Ratio Ratio analysis Return on assets Return on common stockholders' equity (ROE) Solvency ratios Sustainable income Times interest earned Trading on the equity Trading securities Vertical analysis
Required ndicate the effect of each of the following transactions on (1) the current ratio, (2) working capital, (3) stockholders' equity. (4) book value per share of common stock, and (5) retained earnings. Assume that the current ratio is greater than 1:1. (Indicate the effect of each transactions by selecting"" for increase, "-" for decrease, and "NC" for no change.) a. Collected account receivable. b. Wrote off account receivable. c. Converted a short-term note payable to a long-term note payable....
PLEASE HELP! Problem 15-15 Comprehensive Ratio Analysis [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6] You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 900,000 $...
Requirements: A. Gross Margin Percentage B. Earnings Per Share C. Price-earnings Ratio D. Dividend Payout Ratio E. Dividend Yield Ratio F. Return on Total Assets G. Return on Equity H. Book Value per share I. Working Capital J. Current Ratio K. Acid-test Ratio L. Accounts receivables turnover M. Average Collection Period N. Inventory turnover O. Average Sale Period P. Times-Interest Earned Q. Debt-to-Equity Ratio Please Show A step-by-step Solutions; (Only for Genius) Thank you soooooo much. Hykas Corporation's most recent...
19. Make up your own data in the following format, and use the data to calculate the amounts in parts a), b), c), d) and e): Current Assets: Current Liabilities: Total Liabilities: Total Stockholders' Equity: Net Income (2020, current year): Net Income (2019, previous year): Preferred Dividends (current): Common Stock Outstanding (current): Common Stock Market Price (current): $???,??? $???,??? $???,??? $???,??? $???,??? $???,??? $??,??? ???,??? shares $??.00 per share Calculate the following (round to nearest 0.00): a) Ratio of Liabilities...